Innovation is need of the hour for an organization to stay ahead in the competition. Besides a lot of research, the factors which drive innovation are not clearly understood and proper tools are also not available to find the quantum of influence these may have on innovation. In this paper, three groups of characteristics which may have significant influence on innovation are identified. The association between these three groups of characteristics and the quantum of influence each of this group may have on innovation is gauzed. The empirical study has been performed through cluster sampling technique using the instrument developed through this paper. The result of this empirical study is the development of a valid instrument that can be used to study the influence of categories of factors on innovation in IT sector.